Panama is in the process of structuring the design and implementation of the Panamanian Carbon Exchange, a trading system through which a country, company or entity can buy or sell carbon credits in order to make progress towards meeting national emission limit targets.

According to the Ministry of Environment, carbon credits are issued in the form of certificates that represent a certified reduction or removal of one ton of CO2 from the atmosphere, or its equivalent in another greenhouse gas.

The Climate Change Directorate of MiAmbiente is developing the Climate Change Framework Law that will establish the regulations and requirements to participate in the National Carbon Market and for the transaction of tradable climate financial instruments.